Mikohn posts loss for quarter

Thursday, May 9, 2002 | 11:09 a.m.

A Las Vegas gaming equipment company today reported a loss for the first quarter ended March 31.

Mikohn Gaming Corp. reported a loss of $1.9 million, 15 cents a share, on revenue of $24.4 million, compared with earnings of $92,000, 1 cent a share, on revenue of $25.3 million in the year-ago quarter.

Despite the loss and a decrease in revenue, company executives are optimistic because $2.9 million in sales expected to be completed in the first quarter were deferred to the second.

"After a slow start, we look forward to substantial improvement in the second quarter bolstered by our deferred projects," David Thompson, chairman and chief executive officer, said.

"We also expect a strong second half based on growth in slot placements with our new games, better performance in Europe and Australia, moderate growth in table games as our new offerings gain traction and regulatory approvals and improved product sales including signage, electronic displays and systems," Thompson said in a statement.

Thompson said the company is on the verge of winning regulatory approval for its Clue Winning Solution and Trivial Pursuit Easy as Pie slot machines. The company expects to begin marketing those products within two months.

The company also reported that it has not selected a replacement for independent auditor Arthur Andersen LLP, which Mikohn announced it had fired late last month.

Don Stevens, chief financial officer, said an announcement on a new auditor is planned within days. Stevens cited regulatory concerns in New Jersey and Louisiana as the reason for terminating the contract. Regulators in both states have forbidden gaming companies from contracting with Andersen following its role in the Enron scandal.

Mikohn stock was trading at $6.10 a share this morning, down 39 cents.